Nice catch wiseinvest. That's good news. But as I recall, when Moab first disclosed their initial stake some months ago, they also at that time had thought they had struck a constructive tone w/Mr. Marz. What is different now as some more time has passed could be three things: 1. The market, as evidenced by the stock price, has shown an utter disregard and lack of faith in the new CEO and Chairman 2. Relatedly, the CEO/Chairman and BOD's personal stock holdings and option values have all progressed on a glide path toward oblivion and 3. Two activists are now involved and they have also talked to other shareholders, industry analysts, competitors and investment professionals. All that said, it may be time that Mr. Marz will finally give up his "death grip" (w/multiple meanings intended) on the company and will acquiesce to the best interest of all shareholder owners. That is a completely rational and high probability interpretation of what is occurring, though no certainty that reason will prevail. This should have occurred two years ago, but we are where we are and I'll take it.
And again I ask, what are they waiting for? Why have they not replaced the CEO and BOD after nearly two decades of undermanagement? Surely they have enough of a stake to stage a coup. Surely most other retail investors would follow their lead if only they would put forth an alternative slate. How many CEOs. CFOs, COOs, CTOs, Controllers have left in just the last couple years? That pretty much tells the story here. Look up the definition of the word "entropy" in the dictionary--you will find the word Perceptron next to it.
I thought it was mostly a teeth thing w/the Brits, but have you seen Boris Johnson's hair? Dude is still in a 1965 "Rubber Soul" time warp. Can't wait to see him get hung up on a zip line again. Olympics are right around the corner.
I'm glad too. Gonna buy me a nice little cottage/guest house in Scotland real cheap over the next 12-24 months to spend a chunk of my retirement time there. Probably on Isle of Skye when the Pound drops to under $1.00 U.S. and the housing market crashes. Would love to buy in Iona, but nothin ever becomes available there.
just love them. Going to begin to see portfolio managers shift asset mix in this direction in a big way. Small U.S. based companies w/100% of sales derived from the U.S. Globalization, geographic diversification simply spell RISK--in all caps--foreign currency translation risk, geopolitical risk, revenue risk, margin risk, default risk. Just give me good ol' Billy-Bob or Billy-Ray spreading asphalt from 7:00 A.M. to 4:00 P.M. on the highways across the good ol' U.S.A.
You might want to own this at these levels w/the WilPhoneix going back to work. But it begs the question: when was the last time Greenspan was right about anything? And wasn't he the guy who got this whole mess started nearly a decade ago for which we still have to "pay the piper"? OK, that's two questions, sorry.
40% of Backlog in Europe, 33% of Bookings from Europe. Rut Roh! Only question left: Who is going to deliver the eulogy? Wonder how many of the PMs holding this have done the due diligence on those numbers?
PRCP still faces: unresolved litigation, a long deteriorating Chinese economy, the multi-year overhanging VW mess and associated reduction in cap exp,, the U.S. Auto Cycle having peaked, Latin America diving lower still, Europe well below trend line growth at the macro level with or without Brexit and despite negative rates, and the U.S. below historic trend line as well. Japan has been in a decades long recession/depression. Still, if you hold the $1.5 million of debt mentioned in the last CC and it happens to be secured by company assets---those assets gotta be worth at least $10 million despite all the headwinds, lack of management infrastructure and lack of a coherent business plan as a standalone. That's a nice multiplier return if this company takes a digger, potentially much better than the return for equity holders. Of course you want to be first in line w/the debt as there is possibly more debt yet to come.
The market is putting Enterprise Value (giving the company the benefit of its estimated net cash position) for PRCP at a little above $30 million. No one is stepping up to buy it. What is a company worth that cannot make a profit despite market leading technology and an historic Auto Upcycle? Someone could buy it and end up singing that old song from Porgy & Bess: "I got plenty o' nuttin". Great technology. Can't make money. Look at the track record.
Walter Brown Pistor and the former CEO could all potentially lose their entire investment in the company due to "benign neglect". Everyone seems to be sitting on their hands doing their best impression of Alfred E. Neuman---"What Me Worry?" (for all you Mad Magazine mavens out there). Less than $2 per share left to lose, but even that amount is "phantom money" if they tried to exit in the public market. The stock could quickly trade far below that level. They could take this whole deal private for less than $10 million, but apparently no one has even that amount of cash available or could not borrow that much in a buyout. That kinda tells you we are dealing w/small time "players". The total company is worth less than a moderate priced home in the Hamptons. Average daily trading volume is a little over 1,000 shares per day, and yet they still absorb all the attendant costs of remaining public despite being an irrelevant entity to almost all investors. None of it makes sense, except to the insiders and management who still get paid year after year.
For all practical purposes, one cannot exit any significant volume of stock in the public market. The stock is near worthless for the largest holders. Insiders are still being paid however. For insiders it's like an annuity as long as they remain debt-free w/ a small cash balance. Nice gig, getting paid for running in place.
Nothing is going to change until a new Board of Directors and CEO are placed. The stock will be marginalized at heavily depressed levels; it's tainted.
anyone know? That is kind of a key piece of information missing from the release. Is the dayrate the same as the previously contracted dayrate or has it been re-negotiatied? In the absence of any disclosure one might assume the predetermined dayrate still holds--but you know what they say about assuming
of the company ASAP. Not sure to whom they may owe a fiduciary obligation, but institutional holders can clearly see SMIT has been treading water for at least a decade, serving as little more than a "gravy train of compensation" for the BOD and executive officers and delivering nothing to shareholders. This must end. In the meantime, they should exit both the China and Latin America markets which are probably dead for the next decade or two, and implement a significant headcount reduction, beginning at the highest levels. This is a company operating purely in default mode, without a cogent strategic plan in place . It is clear the public market will never give them anything other than a minimal valuation. They have ruined the public trust by their inability to achieve sustained profitability. Do a "Rip Van Winkle", wake up in 2025 and the stock will be likely still be roughly $2 per share. The markets they serve are moribund, global manufacturing continues a downward trend, the company is merely hanging on in zombie mode.
Begs the question: "Then what are they waiting for"? Godot? The public market has voted. The company needs to be sold or taken private. That may be the only way to realize fair value at this point. The public market is not going to give it to them, not w/their checkered up and down history of quarterly results.
hmmmmm? Talk about dead money over an extended period of time.